The present invention is directed to and relates generally to handbag systems and more specifically it relates to a 2-in-1 handbag with an adjustable compartment system for providing a foundation handbag, an insulated secondary inner handbag with an adjustable compartment system to create separate compartments for storage and organization of items such as wallet, cosmetics, baby items, clothing, shoes, toiletry and/or food within the handbag system.